Dear All Seniors,
Please help me in following gratuity matter.
1) As per the Act for the calculation of gratuity you need to take last Basic + D.A. amount. But in our salary structure we don’t have D.A. Component, so instead of D.A.we are taking other allowances component (which is very high figure than other components , and management is also ready for that.) Now my questing is, the method which we are using by taking Basic + other allowance is correct ?
2) One of our employee ( Top Management) is completed his almost 8 years in our company ( still he is working with us )when he will leave the company he will be eligible to get his gratuity from company. At this moment his Basic is Rs. 2,00,250 and other allowance is Rs. 101752, that means the gratuity he will receive Rs. 13,93,855 (200250+101752*8*15/26)as per the act the maximum limit of gratuity is Rs. 10 lacs. Now my question how much amount of gratuity he will get if he leave the company – Rs. 10 lacs or Rs.13,93,855 ? If only Rs. 10 lacs then what about the balance Rs. 3,93,855/-?
Waiting for your valuable reply.
Thanks & Regards
Vaishali
Please help me in following gratuity matter.
1) As per the Act for the calculation of gratuity you need to take last Basic + D.A. amount. But in our salary structure we don’t have D.A. Component, so instead of D.A.we are taking other allowances component (which is very high figure than other components , and management is also ready for that.) Now my questing is, the method which we are using by taking Basic + other allowance is correct ?
2) One of our employee ( Top Management) is completed his almost 8 years in our company ( still he is working with us )when he will leave the company he will be eligible to get his gratuity from company. At this moment his Basic is Rs. 2,00,250 and other allowance is Rs. 101752, that means the gratuity he will receive Rs. 13,93,855 (200250+101752*8*15/26)as per the act the maximum limit of gratuity is Rs. 10 lacs. Now my question how much amount of gratuity he will get if he leave the company – Rs. 10 lacs or Rs.13,93,855 ? If only Rs. 10 lacs then what about the balance Rs. 3,93,855/-?
Waiting for your valuable reply.
Thanks & Regards
Vaishali